As 2013 comes to its end, this is a good time to look ahead to what the coming year might hold for commercial real estate.
Cushman & Wakefield earlier this month did exactly that, releasing its Global Office Forecast for 2014 and 2015.
The good news? The global office market should grow in both 2014 and 2015.
The bad? That growth will remain slow — though steady — throughout next year. It won’t be until 2015 that office growth will become robust, according to Cushman & Wakefield’s report.
In the United States, technology will be the key driver of office growth during the next two years, according to Cushman & Wakefield’s report. Therefore, those markets that cater to technology, energy and new-media firms will see the most growth in their office markets during the next two years. This includes such markets as Boston, San Francisco, Houston and Dallas.
Those markets that rely more on traditional sectors, such as financial, legal and professional business services, will see slower growth. That’s because businesses in these sectors have kept their growth plans on hold, according to Cushman & Wakefield.
In the Midwest, Cushman & Wakefield expects office vacancy rates to fall to 11 percent in Chicago in 2014 and 10.8 percent in 2015.